The provisions of this article establish standards and procedures that encourage the development of housing affordable to a range of households within certain income limits. The purpose of this article is to encourage the development and availability of such housing within the redevelopment project area and to alleviate deleterious impacts of the fifteen (15) percent requirement.
(Ord. 300 § 2, 2010)
As used in this article, the following terms shall have the following meanings:
(a) 
“Adjusted for household size appropriate for the unit”
means for a household of one person in the case of a studio unit, two persons in the case of a one-bedroom unit, three persons in the case of a two-bedroom unit, four persons in the case of a three-bedroom unit, and five persons in the case of a four-bedroom unit.
(b) 
“Affordable housing cost”
shall have the same meaning as set forth in Section 50052.5 of the California Health and Safety Code, as may be amended. With respect to rental units, “affordable housing cost” shall mean “affordable rent” as defined in Section 50053 of the California Health and Safety Code, as may be amended.
(c) 
“Affordable housing production agreement”
means a legally binding agreement between a developer and the City, in form and substance satisfactory to the director, setting forth those provisions necessary to ensure that the requirements of this article, whether through the provision of inclusionary units or through an alternative method, are satisfied and which provides for the following: (1) housing units are developed which are available to and occupied by eligible households in conformity with the designated proportions under recorded covenants enforceable by the City and the agency for the applicable required covenant period and with reporting conforming to the reporting requirements; and (2) the developer receives one or more density bonuses or concessions as provided by City pursuant to Government Code Section 65915.
(d) 
“Designated proportions”
means forty (40) percent very low-income households and sixty (60) percent low-income households or moderate-income households.
(e) 
“Developer”
means any person, firm, partnership, association, joint venture, corporation, or any entity or combination of entities, which seek City approvals for all or part of a residential development.
(f) 
“Director”
means the City’s Director of Community Development.
(g) 
“Discretionary approval”
means any entitlement or approval pursuant to Division 3 of Volume II of the Municipal Code, including, but not limited to, a use permit, variance, design approval, and subdivision map.
(h) 
“Eligible households”
mean very low-income households, low-income households and moderate-income households.
(i) 
“Inclusionary housing plan”
means the plan referenced in subsection (a) of Section 83.010935 and further described in the regulations, which sets forth the manner in which the requirements of this article will be implemented for a particular residential development.
(j) 
“Inclusionary housing fund”
shall have the meaning set forth in Section 83.010955.
(k) 
“Inclusionary unit”
means a dwelling unit that will be offered for rent or sale to a very low-or moderate-income household, at an affordable housing cost, pursuant to this article.
(l) 
“Low-income household”
means a lower income household as defined in Section 50079.5 of the California Health and Safety Code, as may be amended.
(m) 
“Low-income unit”
means an inclusionary unit restricted to occupancy by a low-income household at an affordable housing cost.
(n) 
“Market rate unit”
means a unit in a residential development that is not an inclusionary unit.
(o) 
“Moderate-income household”
means a moderate income household as defined in subsection (g) of Section 50052.5 of the California Health and Safety Code, as may be amended.
(p) 
“Moderate-income unit”
means an inclusionary unit restricted to occupancy by a moderate-income household at an affordable housing cost.
(q) 
“Redevelopment project area”
means an area that has been designated and identified as a redevelopment project area in a redevelopment plan adopted pursuant to the California Community Redevelopment Law (California Health and Safety Code Section 33000 et seq.).
(r) 
“Regulations”
mean the regulations adopted by the City Council pursuant to Section 83.010950 for the implementation and enforcement of the provisions of this article.
(s) 
“Reporting requirement”
means those provisions of the CRL that provide for applicant and income qualifications and reporting, including, without limitation, Health and Safety Code Section 33418.
(t) 
“Required covenant period”
means forty-five (45) years for ownership units and fifty-five (55) years for rental units.
(u) 
“Residential development”
means the new construction of projects consisting of: (1) ten (10) or more single-family units for which a subdivision approval is required and/or obtained pursuant to this Code; or (2) ten (10) or more multi-family dwelling units.
(v) 
“Total housing cost”
means the total monthly or annual recurring expenses required of a household to obtain shelter. For a rental unit, the total housing cost includes the monthly rent payment and utilities. For an ownership unit, the total housing cost includes the mortgage payment (principal and interest), utilities, homeowner’s association dues, taxes, mortgage insurance and any other related assessments.
(w) 
“Very low-income household”
means a very low-income household as defined in Section 50105 of the California Health and Safety Code, as may be amended.
(x) 
“Very low-income units”
means an inclusionary unit restricted to occupancy by a very low-income household at an affordable housing cost.
(Ord. 300 § 2, 2010)
This article shall only apply to a residential development located (wholly or partially) within the redevelopment project area.
(Ord. 300 § 2, 2010)
(a) 
Fifteen (15) percent of all newly constructed dwelling units in a residential development shall be developed, offered to, and sold to very low-and moderate-income households, at an affordable housing cost, as follows: a minimum of six percent of all of the units shall be sold to very low-income households; the remaining nine percent shall be sold (or rented pursuant to Section 83.010920(d)) to moderate-income households.
(b) 
In calculating the required number of inclusionary units, fractional units of .75 or above will be rounded-up to a whole unit if the residential development consists of ten (10) to twenty (20) units; fractional units of .50 or above will be rounded-up to a whole unit if the residential development consists of twenty-one (21) or more units.
(Ord. 300 § 2, 2010)
In lieu of providing the inclusionary units pursuant to Section 83.010920, the requirements of this article may be satisfied through one or more of the alternatives set forth in this section, subject to the procedures and standards set forth in the regulations.
(a) 
In lieu fee. At the discretion of the developer (subject to approval of the City in the case of subsection (a)(5)), payment of a fee in lieu of all or some of the inclusionary units, as follows:
(1) 
The amount of the fee shall be calculated using the fee schedule established by resolution of the City Council.
(2) 
One-half of the in-lieu fee required by this subsection shall be paid (or a letter of credit posted) prior to issuance of a building permit for all or any part of the residential development. The remainder of the fee shall be paid before a certificate of occupancy is issued for any unit in the residential development.
(3) 
The fees collected shall be deposited in the inclusionary housing fund.
(4) 
The City Council may annually review the fee authorized by this section by resolution, and may, based on that review, adjust the fee amount. For any annual period during which the City Council does not review the fee authorized by this section, fee amounts shall be adjusted once by the Director based on the annual increase in the Construction Cost Index for the Los Angeles region.
(5) 
In the event the developer proposes to convey land to the City to fulfill the provisions of subsection (a) of this section, such land shall be conveyed to the City (or, if so designated by the City, the agency) prior to the issuance of a building permit for all or any part of the residential development. The value of the land shall be determined by the City based upon the land as vacant, unentitled property as determined by an appraiser, selected and retained by the City for such purpose. Only land located within the redevelopment project area will be eligible. In all cases, the City shall have discretion whether or not to accept land in satisfaction of the provisions of subsection (a). The Director may consider such factors as he/she deem relevant, including without limitation, slope, soils conditions, infrastructure, condition of title, readiness of the land for development and the availability or lack of funding of the City or the agency to effect development of affordable dwelling units on such land. The City’s costs in connection with any such approval shall be borne by the developer, but the hiring of the appraiser will be undertaken by the City.
(b) 
Development pursuant to certain agreements. Upon application by the developer and at the discretion of the Director, the developer may satisfy the requirement of providing inclusionary units pursuant to Section 83.010920, in whole or in part, by entering into an affordable housing production agreement with the City and the agency.
(Ord. 300 § 2, 2010)
The following residential developments are exempt from the requirements of this chapter:
(a) 
Residential developments that obtain a variance, conditional use permit, or subdivision approval from the City prior to the effective date of the ordinance codified in this chapter, which obtain a building permit pursuant to that discretionary approval within one year of the effective date of the ordinance codified in this chapter, and which obtain a certificate of occupancy pursuant to that same discretionary approval.
(b) 
Residential developments that would be exempt from this article pursuant to State law, including, but not limited to, those for which the City enters into a development agreement.
(Ord. 300 § 2, 2010)
(a) 
At the times, and in accordance with the standards and procedures set forth in the regulations, developers shall:
(1) 
Submit an inclusionary housing plan for approval by the Director, setting forth in detail the manner in which the provisions of this article will be implemented for the proposed residential development;
(2) 
Execute and cause to be recorded a recordable instrument prepared by the City as part of an affordable housing production agreement (unless the developer is complying with this chapter pursuant to subsection (a) (in lieu fee) of Section 83.010920).
(b) 
No discretionary approval shall be issued for all or any portion of a residential development subject to this article until the developer has submitted an inclusionary housing plan and such inclusionary housing plan has been approved by the City.
(c) 
No building permit shall be issued for all or any portion of a residential development subject to this article unless the Director has approved the inclusionary housing plan, and the affordable housing production agreement executed by City, agency and developer and a recordable instrument thereunder.
(d) 
No certificate of occupancy shall be issued for all or any portion of a residential development subject to this article unless the approved inclusionary housing plan has been fully implemented.
(Ord. 300 § 2, 2010)
(a) 
All inclusionary units shall be reasonably dispersed throughout the residential development; shall be proportional, in number, bedroom size and location, to the market rate units; and shall be comparable with the market rate units in terms of the base design, appearance, materials and finished quality.
(b) 
All inclusionary units in a residential development shall be constructed concurrently with or prior to the construction of the market rate units. In the event the City approves a phased project, the inclusionary units required by this article shall be provided within each phase of the residential development.
(c) 
Inclusionary units shall be reserved for very low-, low-and moderate-income households at the ratios established pursuant to Section 83.010920, and shall be provided at the applicable affordable housing cost.
(1) 
An inclusionary unit that is for rent shall remain reserved for the target income level group at the applicable affordable housing cost for a minimum of fifty-five (55) years.
(2) 
An inclusionary unit that is for sale shall remain reserved for the target income level group at the applicable affordable housing cost for a minimum of forty-five (45) years.
(d) 
Notwithstanding subsection (c)(2) of this section, inclusionary units for sale may be sold to an above moderate-income purchaser in accordance with procedures set forth in the regulations, provided that the sale shall result in a recapture by the City or its designee of a financial interest in such unit equal to: (1) the difference between the initial affordable sales price and the appraised value at the time of the initial sale; and (2) a proportionate share of any appreciation.
(Ord. 300 § 2, 2010)
(a) 
The provisions of this article shall apply to all developers and their agents, successors and assigns proposing a residential development within the redevelopment project area. All inclusionary units shall be rented or sold according to the terms of this article and the regulations adopted pursuant to Section 83.010950.
(b) 
Any individual who sells or rents an inclusionary unit in violation of the provisions of this article shall be required to forfeit all monetary amounts so obtained. Except to the extent, if any, otherwise provided under an affordable housing production agreement, recovered funds shall be deposited into the inclusionary housing fund.
(c) 
The City may institute any appropriate legal actions or proceedings necessary to ensure compliance with this article, including, but not limited to: (1) actions to revoke, deny or suspend any permit, including a building permit, certificate of occupancy, or discretionary approval; and (2) actions for injunctive relief or damages.
(d) 
In any action to enforce this article or an affordable housing production agreement recorded hereunder, the City shall be entitled to recover its reasonable attorneys’ fees and costs.
(Ord. 300 § 2, 2010)
The City Council shall by resolution establish regulations for the implementation of this article. Such regulations may be amended at any time by resolution of the City Council.
(Ord. 300 § 2, 2010)
There is hereby established a separate fund of the City, to be known as the inclusionary housing fund. All monies collected pursuant to subsection (a) of Section 83.010925, subsection (d) of Section 83.010940, or Section 83.010945 shall be deposited in the inclusionary housing fund.
(Ord. 300 § 2, 2010)
(a) 
Commencing upon the approval or disapproval of the inclusionary housing plan by the Director pursuant to the regulations, and within ten (10) days thereafter, a developer may request a determination that the requirements of this article, taken together with the inclusionary incentives, as applied to the residential development, would legally constitute a taking of property of the residential development without just compensation under the California or Federal Constitutions. The developer has the burden of providing economic information and other evidence necessary to establish that application of the provisions of this article to the residential development would constitute a taking of the property of the proposed residential development without just compensation. The Director shall make the determination, which may be appealed in the manner and within the time set forth in Section 83.010975, except that the City Council shall serve as the review body.
(b) 
In making the taking recommendation or determination, the decision maker shall assume each of the following:
(1) 
Application of the inclusionary housing requirement to the residential development;
(2) 
Application of density bonuses and other incentives available in connection with the development of affordable units within the residential development; and
(3) 
External funding where reasonably likely to occur.
(c) 
If it is determined that the application of the provisions of this article would be a taking, the inclusionary housing plan shall be modified to reduce the obligations in the inclusionary housing component to the extent and only to the extent necessary to avoid a taking. If it is determined no taking would occur through application of this article to the residential development, the requirements of this article remain applicable.
(Ord. 300 § 2, 2010)
Within ten (10) calendar days after the date of any decision rendered pursuant to this article, an appeal may be filed pursuant to Section 83.010605 of this code. The appellant shall follow the appeal procedures set forth in Sections 83.010610 and 83.010630 of this code.
(Ord. 300 § 2, 2010)